Goldman Sachs, which in 2005 famously suggested crude oil could spike to $105 a barrel before demand destruction kicked in, on Sunday raised its target for Nymex crude-oil prices for year-end 2007 and 2008, saying crude could end that two-year run as high as $95.
Goldman’s thesis is that oil is in a “cyclical” bull market caused by tight supply and OPEC production cuts, at the same time it’s in a longer-term, “structural” bull market caused by inadequate production capacity — a “bull-bull” market, or double-bull market, which is sort of like being on double-secret probation, only with fewer togas.
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